Gold price comes down by Rs 15,900 per tola

KATHMANDU: Gold prices in the domestic market have dropped significantly following the downward revision of customs duty on imports of the yellow metal.

Gold is being traded in the domestic market at Rs 151,300 per tola (11.664 grams) on Monday – Rs. 15,900 per tola lower compared to Sunday.

The government on Sunday decided to reduce customs duty on gold imports to 10% from existing 20%. The government took the decision after gold imports fell significantly in the first four months of fiscal year 2024/25 after gold became cheaper in India due to the reduction of customs duty by the Indian government. This triggered smuggling of gold into Nepal from India.

Nepal imported 132.56 kg of gold worth Rs 1.42 billion in the first four months of the current fiscal year, according to the Department of Customs. This is significantly lower compared to the same period of the previous fiscal year when 1,000.5 kg of gold worth Rs 8.20 billion was imported into the country.

The government had increased customs duty on gold to 20% from 15% through the budget for the fiscal year 2024/25 brought by the Pushpa Kamal Dahal-led government in mid-July.

The price of silver also came down by Rs 115 per tola on Monday.